HOUSE price growth will cool as mortgage rates rise and the cost of living crisis kicks in, a property website predicts.
The average UK price has risen by 8.3 per cent in a year — pushing the typical property value to £256,000 — Zoopla’s index for June shows.
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But annual growth is expected to slow to five per cent by the end of this year.
Richard Donnell, executive director of research at Zoopla, said: “Buyer interest is expected to slow over the coming months as people tighten their belts and spend with more caution.”
He added: “The ongoing impact of the pandemic continues to support a desire to move among home buyers.
“This is a big reason why the market is not slowing as fast as some might expect and demand remains for sensibly-priced homes, especially in more affordable areas.
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“The housing market is not immune from higher mortgage rates which we are starting to see increase quickly.
“While we don’t expect current trends to lead to a marked drop in house prices next year, buyers will become more wary and it is important sellers are realistic when pricing their homes to sell.”
